The closings, announced on a conference call, follow the Grapevine, Texas-based company’s report today of better-than- expected third-quarter results, excluding an impairment charge. The company also forecast fourth-quarter profit that was in line with analysts’ estimates.
GameStop is showing “strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively,” Chief Executive Officer J. Paul Raines said today on a conference call.
GameStop is showing “strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively,” Chief Executive Officer J. Paul Raines said today on a conference call.
Basically, traditional gaming is dying thanks to a rise in mobile and online gaming. Despite this, GameStop did a-ok for itself in the past year, increasing its stock value by 1.5%, and earnings of 38% which is above the 33% estimated for them. Sales, however, went down 8.9%.
GameStop isn't going to take this shift in the market laying down, no sir! They have plans to open 80 GameStop Kids locations. These stores will feature toys and collectables for kids under the age of 13, which is probably also about the average age of their clients in regular GameStop locations.
It would probably also help their bottom line if they stopped investing in those annoying "get this exclusive item when you pre-order from GameStop" commercials they have for every game.
(via Bloomberg)
Comment